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Tennessee · Shelby County

Shelby County

county Allowed with registration Verified · last verified 2026-07-15

Short-term rentals are ALLOWED in unincorporated Shelby County subject to a mandatory permit. The county-level regime is Shelby County Code of Ordinances, Chapter 8, Article XVIII "Short Term Rental of Residential Property" (Sec. 8-801 through 8-813), enacted by Ord. No. 488, Exh. A, adopted August 13, 2018. Sec. 8-801 expressly limits the regime to "short-term rental units within the unincorporated parts of the county." A "Short Term Rental Property Permit" must be obtained from the Shelby County Clerk's office before operating or advertising an STR; each unit requires its own permit and the permit number must appear in any online/platform advertising (Sec. 8-806). An STR is defined as a residential dwelling unit (or a portion, or a detached accessory dwelling unit) containing not more than four sleeping rooms used/advertised for transient occupancy; units rented to the same occupant for more than 30 continuous/consecutive days (or on a written month-to-month lease), plus B&Bs, boarding houses, hotels and motels, are excluded (Sec. 8-802, 8-804). Key requirements: $100 non-refundable application fee (Sec. 8-808(a)(8)); $1,000,000.00 per-occurrence fire/hazard/liability insurance (Sec. 8-808(a)(4)); a responsible party residing/located within 50 miles who answers calls 24 hours a day (Sec. 8-808(a)(9), 8-810(h)); a five-pound ABC fire extinguisher, UL 217 smoke alarms, and carbon monoxide detectors (Sec. 8-810(b)-(c)); principal renter at least 18 (Sec. 8-810(e)). Permits expire 365 days after issuance and renew for a $50.00 fee, with renewal requested at least 30 days before expiration (Sec. 8-810(i)). Shelby County levies a 5% privilege (occupancy) tax on the consideration charged for STR occupancy (Sec. 8-807(b)). Operating without a permit subjects the owner to a fine not to exceed $50.00 per day per unit plus court costs (Sec. 8-812). Grandfathering applies to STRs in use before the effective date under T.C.A. § 13-7-603 / § 13-7-604 (Sec. 8-803). NOTE: this county ordinance governs the UNINCORPORATED areas of the county only; incorporated municipalities within Shelby County — notably the City of Memphis (Memphis Code of Ordinances Chapter 5-44, Ord. No. 5631) — administer their own separate STR permit and tax regimes (the Memphis ordinance's exact effective date was not confirmed against an official source in this pass).

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • county Short Term Rental Property Permit (Shelby County Clerk) Required
    Fee: $100 / per_permit_365_days · Renewal: Permit expires 365 days after issuance; renew for a $50.00 fee; renewal request must be received at least 30 days before expiration (Sec. 8-810(i)). · Applies to: Any owner operating or advertising a residential dwelling unit (or portion, or detached accessory dwelling unit) with not more than 4 sleeping rooms for transient occupancy in unincorporated Shelby County; one permit per unit. · official page ↗
  • county Permit number displayed in advertising Required
    Fee: — · Renewal: — · Applies to: All STR listings on any internet website, mobile application, or hosting platform. · official page ↗
  • county Fire, hazard and liability insurance Required
    Fee: — · Renewal: — · Applies to: All STR permit applicants; verification submitted with application. · official page ↗
  • county Responsible party within 50 miles (24 hours a day) Required
    Fee: — · Renewal: — · Applies to: Every permitted STR; one or more adult persons/entities/businesses residing or located within 50 miles who appear on the premises to respond to violations, and who answer calls 24 hours a day. · official page ↗
  • county Smoke alarms, CO detectors, and fire extinguisher Required
    Fee: — · Renewal: — · Applies to: Every permitted STR unit. · official page ↗
  • county Principal renter at least 18 Required
    Fee: — · Renewal: — · Applies to: The principal renter of any permitted STR unit. · official page ↗
  • county Compliance verification form (building/health/life-safety codes) Required
    Fee: — · Renewal: — · Applies to: All STR permit applicants; an on-site inspection by the county clerk's office is authorized but not required prior to issuance or renewal. · official page ↗
  • county County occupancy/privilege tax collection & remittance Required
    Fee: — · Renewal: — · Applies to: STR owners must collect/remit the 5% county occupancy & sales taxes unless a hosting platform collects and remits them under a voluntary collection agreement with the county. · official page ↗
  • state Tennessee sales & use tax registration Conditional
    Fee: — · Renewal: — · Applies to: STR owners/providers renting for less than 90 continuous days must register and collect 7% state + local sales tax, unless the rental is booked through a marketplace facilitator (short-term rental marketplace) that collects and remits on their behalf. Registration with the Department is required for those with over $100/month in taxable service sales. · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
Shelby County STR privilege (occupancy) tax — — — —
Tennessee state sales & use tax — — — —
Local option sales tax — — — —

Operating rules

Primary residence
No
Min stay (nights)
—
Max nights / year
—
Max occupancy
No fixed countywide occupancy cap. The permit application sets a per-unit 'maximum number of transient capacity per night' (Sec. 8-808(a)(1)); and a qualifying STR is structurally limited to a residential dwelling unit, portion of a unit, or detached accessory dwelling unit containing not more than four sleeping rooms (Sec. 8-802, 8-804, 8-810(g)).
Zoning-restricted
No
Cap on licenses
—

Grandfathering: Under T.C.A. § 13-7-603, the article (including the permit requirement) does not apply to a property used as an STR by the owner before the effective date, until it is sold, transferred, ceases STR use for 30 continuous months, or violates generally applicable local law 3+ times per T.C.A. § 13-7-604 (Sec. 8-803).

Zoning: STRs in unincorporated Shelby County are regulated by Article XVIII rather than the rooming-house provisions of Section 2.5.2 of the Memphis and Shelby County Unified Development Code (Sec. 8-805). The ordinance does not restrict STRs to specific zoning districts, but properties must comply with applicable building/technical codes.

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Frequently asked questions

Is Airbnb legal in Shelby County?
Short-term rentals are ALLOWED in unincorporated Shelby County subject to a mandatory permit. The county-level regime is Shelby County Code of Ordinances, Chapter 8, Article XVIII "Short Term Rental of Residential Property" (Sec. 8-801 through 8-813), enacted by Ord. No. 488, Exh. A, adopted August 13, 2018. Sec. 8-801 expressly limits the regime to "short-term rental units within the unincorporated parts of the county." A "Short Term Rental Property Permit" must be obtained from the Shelby County Clerk's office before operating or advertising an STR; each unit requires its own permit and the permit number must appear in any online/platform advertising (Sec. 8-806). An STR is defined as a residential dwelling unit (or a portion, or a detached accessory dwelling unit) containing not more than four sleeping rooms used/advertised for transient occupancy; units rented to the same occupant for more than 30 continuous/consecutive days (or on a written month-to-month lease), plus B&Bs, boarding houses, hotels and motels, are excluded (Sec. 8-802, 8-804). Key requirements: $100 non-refundable application fee (Sec. 8-808(a)(8)); $1,000,000.00 per-occurrence fire/hazard/liability insurance (Sec. 8-808(a)(4)); a responsible party residing/located within 50 miles who answers calls 24 hours a day (Sec. 8-808(a)(9), 8-810(h)); a five-pound ABC fire extinguisher, UL 217 smoke alarms, and carbon monoxide detectors (Sec. 8-810(b)-(c)); principal renter at least 18 (Sec. 8-810(e)). Permits expire 365 days after issuance and renew for a $50.00 fee, with renewal requested at least 30 days before expiration (Sec. 8-810(i)). Shelby County levies a 5% privilege (occupancy) tax on the consideration charged for STR occupancy (Sec. 8-807(b)). Operating without a permit subjects the owner to a fine not to exceed $50.00 per day per unit plus court costs (Sec. 8-812). Grandfathering applies to STRs in use before the effective date under T.C.A. § 13-7-603 / § 13-7-604 (Sec. 8-803). NOTE: this county ordinance governs the UNINCORPORATED areas of the county only; incorporated municipalities within Shelby County — notably the City of Memphis (Memphis Code of Ordinances Chapter 5-44, Ord. No. 5631) — administer their own separate STR permit and tax regimes (the Memphis ordinance's exact effective date was not confirmed against an official source in this pass).
Do I need a license or registration for a short-term rental in Shelby County?
Yes — Shelby County requires: Short Term Rental Property Permit (Shelby County Clerk); Permit number displayed in advertising; Fire, hazard and liability insurance. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Shelby County?
Shelby County STR privilege (occupancy) tax, Tennessee state sales & use tax, Local option sales tax. Use the lodging-tax estimator on this page for a specific stay.

Official sources

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In Tennessee

Cities in this county Memphis

Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.